Thank you for visiting our complete guide on the best ways to invest in gold and other precious metals. In this guide, we will help you learn how to buy gold like a pro.
We will explain why you should invest in gold and whether you should invest in physical gold, futures options EFTs, gold mining stocks, gold funds, or gold IRAs.
Since this is a comprehensive guide, you can use the quick links below to jump straight to any section:
1. Why Invest In Gold?
1.1 Gold Key Facts
2. Gold Demand Is Increasing
3. Physical Gold, Futures Options, Gold Stocks Or Funds?
3.1 Physical Gold
3.2 Futures Options (EFTs)
3.3 Gold Mining Stocks & Funds
3.4 Gold Coins Or Gold Bars
4. What Is Better To Invest In: Gold Or Silver?
5. How Much Gold Should You Invest?
6. How Liquid Are My Precious Metals Investments?
7. Choosing A Reputable Gold Dealer
7.1 How To Do Your Due Diligence
8. Where To Store Your Gold Bullion?
9. Why Invest In A Gold IRA?
10. How To Start A Gold IRA
11. The 4 Best Precious Metals To Invest In Right Now
12. Gold Is Power And Freedom
Now, let us jump straight to the topic of why you are here: to learn the best way to invest in gold.
The best way to invest in gold is by owning physical gold, and in this guide, we will explain why.
But if you want to jump straight to the reasons why you should invest in physical gold, you can click here.
With that said, we will also cover the different options for gold investing, such as futures options EFT’s, gold mining stocks, gold funds, or gold IRAs. So that you will have all the information you need to make the right investment decision for the future.
But before we dig in deeper, we want to say: what a tumultuous year it has been…
With Brexit, negative bond yields, a trade war with China, an oil price crash, and a worldwide pandemic that does not seem to disappear any time soon.
The US inflation rate is already exceeding 7% and is expected to contribute to the worst recession since the Great Depression.
That being the case, savvy investors have always been aware of the importance of owning physical gold as part of a well-balanced and diversified portfolio, and you should too.
Physical gold is a world-renowned safe haven for investors offering the ultimate insurance and protection against turbulent economic times.
And as mentioned earlier, these turbulent economic times are already here with the coronavirus pandemic and its devastating effects on the world’s economy.
It is now time to protect your assets, and with this guide, we will help you learn how!
You should invest in gold because gold does not only protect your portfolio from the volatility of the markets but is also setting it up for significant future growth.
As J.P Morgan once said:
What he means is that in times of economic uncertainty and instability, buying gold makes more sense than other assets.
Gold is no one’s liability and carries no counterparty risk. It is a tangible asset that will stand the test of time.
And that is why physical gold and other metals should be an essential part of your investment portfolio.
They serve as financial insurance and a hedge against inflation and currency risk.
Trevor Gerszt, founder of Goldco means:
“Precious metals should not be seen as an investment, but as financial insurance.”
Historically, gold has moved in the opposite direction of traditional securities like stocks, bonds, and mutual funds.
When the stock market goes down, the price of gold and silver tends to rise.
For this reason, gold has proved to be a successful preserver of wealth throughout time.
In addition, high gold prices and record demand have also ensured that it has outperformed most other forms of investments.
As a highly precious metal, gold’s worth is recognized internationally and is considered a valuable luxury no matter where you are in the world.
That being the case, a gold investment should be viewed primarily as a low-risk security asset.
So if you are looking to minimize risk, diversify your portfolio, and safeguard your wealth during times of heightened volatility, you should turn to precious metals.
Here is a summary of gold key facts:
The combination of these factors means that adding gold to a portfolio can enhance risk-adjusted returns.
With that, let us take a look at the increasing demand for gold and why that is next.
For starters, small gold bars and gold coins accounted for approximately two-thirds of the annual investment in gold.
As well as around one-quarter of the global gold demand over the past decade.
Second, the demand for bars and coins has quadrupled since the early 2000s and the trend covers both the East and the West – World Gold Council.
The coronavirus outbreak was the single biggest factor influencing the gold demand.
So, as the scale of the pandemic and its economic impacts are emerging, investors sought and are seeking safe-haven assets.
Now, let us move on to the main topic of this guide: Whether you should invest in physical gold, future options, gold mining stocks, or funds.
We will start by taking a look at physical gold.
When it comes to paper gold vs physical gold, the advantage of actually being able to take delivery of physical gold coins or bars is enormous.
For this reason, investing in a gold IRA is a method that is becoming more and more popular.
With a gold IRA, you get to own physical gold coins or gold bars, while still enjoying the same tax advantages as a conventional IRA.
And when it comes time to take a distribution, you can choose to either receive cash or take possession of your gold coins or bars completely tax and penalty-free.
For more details, please visit our gold IRA guide.
These indirect forms of investing in gold are much riskier than the physical metal.
In fact, physical gold offers you that layer of protection and security, which EFTS (Gold Exchange Traded Funds) do not.
So, investing in an ETF that owns gold stocks is a higher-risk way to play.
Also, the management fees on your holdings will add up. And in practice, this can have much the same effect as inflation.
If you do not want to purchase physical gold, you can always look to gold mining stocks.
But keep in mind that gold stocks do not necessarily move in concert with bullion prices since mining companies succeed or fail based on their individual operating performance.
As well as how they deploy their capital and generate profits.
If you like the profit potential of gold mining stocks, but do not want to buy individual companies, you can invest in gold funds instead.
However, be aware that gold stocks rise and fall faster than the price of gold itself.
As a result, you do not have the security of physical possession of the metal if the companies you buy are unsuccessful.
With physical gold bullion, this would not affect you directly as you are not relying on any third-party individual or company to look after your wealth for you.
Instead, you are in control of your own wealth.
It goes without saying:
Whether to invest in gold coins or gold bars depends on your individual investment goals and situation.
For more details, you can view our list of IRA-approved gold and silver bullion.
Additionally, prudent gold investors ensure that they pay the lowest costs to purchase their gold.
And are then able to sell it quickly and easily for the full value when they want to.
The good news is that you can rest assured that there will always be bullion dealers who are willing to buy your gold instantly over the telephone.
In just a few minutes, you can realize the value of your gold and get a bank transfer or instant cash payment the very same day.
|For instance, both gold investment companies, Augusta Precious Metals and Goldco will buy back your precious metals any business day of the week, and have funds in your possession within 24 hours of a sale.|
Image Source: augustapreciousmetals.com
The question of whether it is better to invest in gold or silver is often on new investors’ minds.
First of all, it is important to remember that gold and silver have their own advantages and disadvantages.
Ultimately, your decision to invest in gold or silver will depend on which metal better suits your investment needs.
Many investors decide to invest in both gold and silver.
Here are a few things to consider:
While $50,000 in gold can fit into your pocket, $50,000 in silver will fill many Priority Mail shipping boxes.
So, the sheer amount of silver can make some investors feel rich.
In addition, you should not forget that you have the option to invest in four different precious metals: gold, silver, platinum, and palladium. We will dig deeper into these metals in the section: The 4 best precious metals to invest in right now.
As exciting as that might be, how much gold should you invest to achieve maximum benefit, you may ask?
Let us answer that next.
According to the portfolio allocation analysis (based on the seminal work of Richard and Robert Michaud) investors who hold between 2% to 10% of their portfolio in gold can significantly improve their performance.
This is also true when assuming a conservative average annual gold return of a modest 2% to 4%, which is well below its actual long-term historical performance.
So, investing as little as 2% to 10% of your total portfolio will set your portfolio up for significant growth.
But more importantly, it will offer you financial insurance and a hedge against inflation.
Note: Any gold company that tells you to invest more than 10% of your total portfolio does not have your best interest in mind, and you should continue looking for a reputable gold dealer.
The liquidity of your precious metals investments will depend on what form of precious metals you invest in.
But in general, gold and silver are highly liquid.
In fact, gold and silver are traded 24/7 around the world. The investor markets for gold coins and bars are highly active.
And as previously mentioned, you can rest assured that you will always be able to find a willing buyer for your precious metal investments.
Today, the demand for gold and silver is so high that many investors cannot find enough gold and silver coins.
Some mints around the world had to shut down their operations temporarily as a result of COVID, which has had the effect of further spurring demand.
Needless to say, everyone wants to get their hands on gold and silver coins while they still can and before prices rise any further.
When investing in, for example, a precious metal IRA and you want to take a distribution, you can easily take possession of your precious metals.
Also, aside from potentially having to sell a portion of your assets to cover any taxes you may owe, you will not necessarily have to worry about liquidating a huge portion of your precious metals.
We cannot state enough how important it is to choose a reputable gold dealer.
It can make all the difference, both when it comes to credibility and reassurance.
As well as when assessing the vital elements that can affect your investment return such as coin selection and tax efficiency.
It is of paramount importance to do proper due diligence before transferring your hard-earned money from your bank account.
More importantly, because gold is an expensive purchase, one bad transaction can cost you a lot of money.
Reputable gold investment companies will be able to help both experienced investors looking for diversification, as well as those looking to own gold for the first time.
Our recommendation of gold companies are:
Besides, your dealer should be able to offer options such as tax-free gold, pension gold or a so-called gold IRA, a buy-back program, and so forth.
Step 1. Research The Internet
The internet is the best place to conduct your research.
The internet holds information about the impartial experiences, opinions, and recommendations of millions of people all around the world.
Simply use the Google giant, and type in the company or brand name to see what comes up.
Step 2. Research Customer Reviews
The internet is the world’s largest open forum in which companies have no control.
It will quickly become apparent if a gold bullion dealer has a negative online reputation, in which case they should be avoided at all costs.
The best way is to research what other customers are sharing about their experiences on independent third party review sites like TrustLink and TrustPilot.
Also, an effective way to identify credible reviews is to type the bullion dealer’s brand name into Google search followed by the word ‘reviews’.
For example, ‘Goldco reviews or Regal Assets reviews’. And anything below 4.7 out of 5 would require some serious further investigation.
Step 3. Trust Your Gut Feeling
After speaking to a gold bullion dealer, you should feel certain that they have your best interest in mind.
Be alarmed if they recommend investing all your assets into precious metals.
The whole idea is to diversify your assets.
Also, your gold dealer should consider your long-term investing goals and recommend the best solution for you.
There are 3 primary options for storing your gold bullion:
First of all, you can take personal custody of your bullion.
If you choose this option, you will need to store it in a safe place, somewhere it is unlikely to get stolen or be destroyed by fire or some other disaster.
Furthermore, make sure to insure your gold.
You can do this easily with your homeowner’s insurance policy to provide coverage in the event of a loss.
Second of all, you can store your gold with the gold dealer you bought it from.
For example, Goldco charges $0 for storage for non-IRA transactions.
Third of all, a self-directed gold IRA will allow you to hold bullion in your retirement account with the same tax advantages as a conventional IRA.
Setting up a gold IRA is a specialized process, and you will need to find an IRA custodian that specializes in this practice.
All these companies have IRA experts who make the transfer or rollover process quick and painless.
You should invest in a gold IRA because it allows you to diversify any portion of your retirement portfolio by actually owning physical metals within that retirement plan.
Besides, you can include pre-existing IRAs and former 401k(s) with previous employers.
By investing in gold and other precious metals through a gold or precious metals IRA, you can rest assured that your assets are safe and secure.
You do not have to worry about a possible stock market crash or inflation, where your paper assets would lose their value.
Investors can securely possess physical precious metals in a tax-deferred account.
To begin the process of opening a gold or precious metals IRA is simple, especially when you partner with precious metals experts who know the ins and outs of this type of IRA.
Let us show you the easy 4 steps when opening a gold IRA next:
1. Select Your IRA Plan
For starters, to invest in precious metals you have to start with a self-directed IRA. As an investor, you can begin a new IRA account, or roll over from an existing retirement account. It is key to speak with a tax advisor and precious metals expert to make sure that you follow regulations and that any retirement accounts you currently hold are eligible for a gold IRA transfer or rollover, or other precious metals IRA.
2. Select A Precious Metals Custodian
Second, gold IRA assets need to be stored with a custodian per IRS regulations. So, working with precious metals investing experts, like those at Goldco or Augusta Precious Metals will help you find a custodian experienced with gold IRA investing. That way, you’ll ensure that your self-directed IRA is set-up correctly.
3. Select Your Precious Metals
When choosing precious metals, it is important to remember that they need to meet certain IRS rules and regulations to avoid retirement mistakes when investing. Working with a precious metals specialist will ensure that you are choosing the right types of gold, other precious metals or crypto.
4. Purchase Precious Metals
Once you have chosen your desired metals as an investment, you can purchase them and work with your custodian regarding storage. The custodian will keep your assets safe and secure at a bullion depository so that they will be available when you need them.
While everyone is familiar with gold and silver, they often overlook the other precious metals, those in the platinum group: ruthenium, rhodium, palladium, osmium, iridium, and platinum.
So what is the best metal to invest in right now?
There is a reason people refer to certain benchmarks as a “gold standard” – because gold is the object against which every other good has always been valued.
Here are reasons why gold is the most desirable of the metals:
A gold IRA allows owners of tax-advantaged retirement accounts such as a 401(k), 403(b), TSP, IRA, or similar account to roll over those funds into an IRA that invests in precious metals such as gold.
As mentioned, the gold IRA offers the same tax advantages as any conventional IRA, but with the added protection that an investment in physical gold coins or bars can offer.
All that glitters is not gold, as silver investors know well.
While silver often plays second fiddle to gold, it is an important metal in any investor’s portfolio because of the following reasons:
Read more about the benefits of silver in:
Like gold, silver can be invested through an IRA.
A silver IRA allows investors to hold the silver in an IRA and enjoy all the same benefits of a tax-advantaged retirement account, while simultaneously investing in physical silver coins or bars.
Platinum is the third-most-popular precious metal among investors today.
Platinum’s history is not as long as that of gold even though the metal has existed for millennia.
Roughly half of the platinum produced today is used in automotive catalytic converters, its primary industrial use.
A large portion of platinum is used in jewelry. And the remainder is used for electronics and in various other industries that need platinum’s resistance to corrosion.
The platinum price has been more volatile than gold recently, largely due to falling industrial demand from the automotive industry.
Over 80% of today’s platinum production comes from South Africa, which may lead to fears of supply disruption.
However, that also means that in the event of a disruption, the platinum price should rise significantly.
With that said, it is hard to imagine platinum becoming any cheaper than it already is.
Years from now investors may look back and kick themselves for not investing in platinum when they had the chance.
Only discovered in the early 19th century, and once of limited use primarily in jewelry, palladium has rocketed in price in recent years.
Like its sister, platinum, palladium finds one of its primary uses in the automotive industry in catalytic converters.
Recent supply disruptions have caused the palladium price to skyrocket, reaching over $2,500 at one point in early 2020.
Even though the price has fallen back below $2,000, palladium is still more valuable than gold, at least for now.
On a final note, we want to give you something important to consider: The power and freedom precious metals offer.
Gold and silver have been the money formula for thousands of years.
Because investors are allowed to hold their precious metals outside of the financial system, it gives them some level of power, liberty, and freedom.
Much of the world relies on a debt-based Fiat Ponzi scheme and metals protect investors from this.
More so, precious metals are a separate asset class from stocks and bonds and are partially uncorrelated, which means that they have their own unique risks and opportunities.
Gold should be the most essential part of your investment portfolio since it is a form of financial insurance and an inflation and deflation hedge.
The yellow metal protects you from currency risk, stock market volatility, and the grip of the financial system.
Besides, just a small allocation of precious metals 2% to 10% could add a significant amount of protection to your portfolio if things get ugly in the financial markets.
There will always be a great demand for physical gold and silver. But, unfortunately, there is a limited supply, which is why investors are flocking to get hold of the yellow metal while they can.
And you should, too!
Learn everything you need to know about owning physical gold in an Individual Retirement Account, 401(k) rollover and transfer rules, the best gold IRA companies, etc.
Learn what the difference between a gold IRA rollover and transfer is, what are the rules and regulations, how to store your IRA gold, when you can take physical possession of your gold, etc.
We believe it is. Throughout history, gold and silver prices have moved in the opposite direction of paper assets and can, therefore, provide a good hedge against inflation. Past performance doesn’t guarantee future gains, but the numbers show that the weaker the dollar has become in the past, the better gold generally has performed. In fact, the relationship between gold and the dollar is often seen as an inverse one.
Traditional IRA accounts may not be enough to provide for you and your loved ones, post-retirement. Not if the economy remains as uncertain as it has looked recently.
For eons, investors have looked to gold to help them potentially offset losses due to economic turmoil. A gold IRA or precious metals IRA permits you to diversify a portion of your retirement portfolio — including pre-existing IRAs and former 401k(s) with previous employers — by actually owning physical gold (and silver) within a retirement plan. As a result, you can securely possess physical precious metals in a tax-deferred account.
Indirect forms of investing in gold are much riskier than physical metal. You are relying on any third party individual or company to look after your wealth for you, and depending on the company’s success or failure, you risk losing your investment. With physical gold, you are in control of your wealth. Physical gold offers you that layer of protection and security which Gold Exchange Traded Funds (ETFs), gold mining stocks and funds do not.
When investing in a gold IRA, you will get the same tax benefits as a traditional IRA, while actually owning physical gold coins or gold bars.
While some coins can be included in precious metals IRAs, only certain coins are IRS approved for inclusion in IRAs. In fact, not all bars or bullion are IRS approved. The IRS maintains a list of acceptable forms of precious metals for IRAs. You can be certain that a reputable gold IRA company offers a variety of metals for IRAs within IRS guidelines.
Yes. While established gold IRA companies often recommend Equity Trust as their preferred custodian and Delaware Depository for storage, you can choose your own custodian and storage companies.
Non-IRA precious metals, yes. Not metals for an actual IRA. IRS rules forbid keeping your IRA precious metals at home or in a standard safety security box. They must be held by an approved non-bank trustee or a bank within IRS guidelines that restricts access. In other words, just like a traditional IRA, the access to the precious metals in your precious metals IRA must be restricted in specific ways to ensure deposit and disbursement laws are followed.
No. Like all investments, the future value of precious metals is not guaranteed and can rise or fall based on a variety of market influences. But we believe physical precious metals are your safest bet to hedge against a stock market crash, inflation, and the debasing of the dollar.
At age 59½, you or the beneficiary of your precious metals IRA can start taking penalty-free distributions from the account, according to the IRS.
Usually around two-three weeks, although each application is different and the amount of time varies on a case-by-case basis.
The customers will receive top-notch service and specialized account setup knowledge provided by the gold IRA company’s IRA Processing Department throughout the process from start to finish. They do 95% of the paperwork with them. Customers can feel safe knowing they will be kept up to date every step of the transfer process by daily calls or e-mails from the IRA Processing team with any gold IRA company listed on How To Invest Gold. These companies also often provide lifetime account support.
Goldco is one of the leading providers of precious metals IRAs, and its IRA & 401(k) rollovers are easy and painless. They pride themselves in customer service and the ability to help individuals diversify their retirement accounts and skyrocket their wealth.
Goldco has an A+ rating by the BBB, and Inc. magazine ranked Goldco the 528 in its 35th annual Inc. 5000, a list of the nation’s fastest-growing private companies. With Goldco, any investor can buy precious metals outright, even if they specialize in precious metals IRAs.
Augusta Precious Metals is a premium provider of precious metals products and services, with a specialty in gold and silver IRAs. The company’s reputation of a customer-first approach to sales, service and education is well-known throughout the retirement investing community. Augusta has received ZERO complaints at either the BBB or BCA since opening its doors in 2012 – and has received thousands of 5-star reviews across the most popular consumer rating platforms. And here’s a big reason for all the excitement: Augusta offers the most competitive, transparent pricing in the industry, underscored by its price-match guarantee on all coins.
Additionally, Augusta will waive fees up to 10 years for new customers (a special – ask how many years you qualify for). As much as all that is, Augusta Precious Metals offers much more to hard-working retirement savers, including a free one-on-one educational web conference designed by the company’s on-staff Harvard-trained economist. This is the same web conference attended anonymously by hall of fame quarterback Joe Montana that convinced him to become an Augusta customer. Mr. Montana’s personal financial advisors found the company for him after researching all the gold IRA companies in the U.S.! Read the full review of Augusta Precious Metals in section: Reviews.
There has never been a better time to invest in gold, silver, and alternative assets (cryptocurrency like Bitcoin or Ethereum) than today. With the ease of setting up a gold IRA or crypto IRA, you can go from worrying about your retirement savings to complete confidence in the security of your wealth. But choosing the right company to invest with can be extremely difficult unless you know what to look out for.
When reviewing gold IRA and crypto IRA companies it’s critical to compare the ratings and reviews by looking at independent authority sources. We look at the scores given by using 5 independent rating sources that include the Better Business Bureau, Business Consumer Alliance, TrustLink, TrustPilot, and Ripoff Report.
We have looked into Augusta Precious Metals, Goldco Precious Metals, and Regal Assets, both top-rated gold IRA and alternative assets companies, as well as the best online gold and trading company BullionVault.
Please feel free to reach out if you have any questions about the content of this website. If you believe something is reviewed and explained incorrectly, please send us an email at [email protected].
|Disclaimer: The owner of this website is not licensed as an investment advisor and, accordingly, does not make any recommendations regarding clients’ personal investment portfolios. It is recommended that you carefully evaluate and research the risks and rewards associated with investing in alternative assets such as physical precious metals and cryptocurrencies before you make a purchase. Learn more in our Terms of Service. |
Our mission is to provide investors and retirees all the information they need when it comes to precious metals and cryptocurrency investing. We aim to provide a complete guide on the best ways to invest in gold, silver, and crypto.
We believe that investing in precious metals and cryptocurrencies through your IRA or 401(k) is one of the best ways to invest in this asset class, due to the tax-saving component. A gold or crypto IRA is the best way to protect your retirement account and adds financial insurance.
Whether you are interested in gold coins, pure minted bars, EFTs, or gold mining stocks, you will find the information you need on this website to get started on the right foot.